France's state-owned EDF is in talks to acquire So Energy, the ESB-majority-owned British electricity supplier and solar installer, a deal that would deepen consolidation among UK suppliers as incumbents race to close the gap on Octopus Energy's dominant market share.

EDF is a French state-owned electricity utility already supplying around 5 million customers in Britain.

So Energy is a British electricity supplier and solar panel installer, majority owned by Ireland's state-owned utility ESB.

ESB is Ireland's state-owned electricity utility, holding a majority stake in So Energy.

Furthermore, a So Energy spokesperson said the company is considering a range of options but could not comment further given the commercially sensitive nature of the matter. The deal would add roughly 300,000 customers to EDF's UK base, according to reporting. No valuation for So Energy has been disclosed.

EDF's approach follows E.ON's move in May to acquire rival Ovo Energy, and together the two deals point to a market consolidating around fewer, larger players rather than fragmenting further. UK energy retail is now dominated by what analysts describe as a Big Three, holding roughly 73% of the market between Octopus, British Gas and E.ON following the Ovo deal, up from around 57% held by the top three suppliers in the market's early years.

Octopus Energy's rise, from zero to roughly a quarter of UK households in under a decade, has forced legacy suppliers including EDF to pursue acquisitions rather than organic growth to defend scale, since matching Octopus on technology and customer service alone has proven difficult for incumbents built on older platforms.

For the sector, ESB’s sale would mark an exit from UK retail supply rather than a defensive hold, consistent with state-owned utilities increasingly divesting retail-facing units to concentrate capital on generation and grid infrastructure instead.

Source: Reuters